Euro: Gradual downside toward key support against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight ongoing Euro (EUR) weakness against the US Dollar (USD), with EUR/USD at fresh 17‑month lows. Intraday, further losses are possible but seen contained within 1.1145–1.1185. Over the next 1–3 weeks, the downtrend that began more than a month ago could extend gradually toward 1.1115 unless strong resistance at 1.1220 is broken.

Euro-Dollar slide not yet stabilised

"24-HOUR VIEW: We did not expect EUR to drop sharply to a low of 1.1151, as we had expected range-trading. Further EUR weakness is not ruled out, but given the oversold conditions, any decline should stay within a 1.1145/1.1185 range. In other words, a continued decline below 1.1145 is unlikely."

"1-3 WEEKS VIEW: Our most recent narrative was from last Thursday (08 Oct, spot at 1.1200), when we highlighted that “there is a chance for EUR to test 1.1145.” After trading in a range for a few days, EUR dropped sharply to a low of 1.1151 yesterday. Despite the decline, downward momentum has not increased much. However, the weakness in EUR that started more than a month ago has not quite stabilised, and EUR could decline gradually toward 1.1115. On the upside, a breach of the ‘strong resistance’ at 1.1220 (level was at 1.1255 yesterday) would mean that EUR is not declining further."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)